Tag Archives: marijuana payment processing

Congress Shows Little Interest in the Marijuana Industry’s Banking Problems

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Washington DC Capitol detail on cloudy skyDespite the pleas from marijuana businesses and medical marijuana users, Congress has revealed that it has no intentions of resolving and addressing the issue of legalizing marijuana any time soon. While nearly half of the states have one small victories in legalizing marijuana, it is still illegal on the federal level.

Congress has shown little interest in dealing with the conflict that continues between federal and state laws. The problem is that it has caused and continues to be an issue for the marijuana industry to find the banking solutions that they so badly need in order to operate.

This banking crisis has left business owners all over the country with no way to deposit their profits and to find payment processing solutions. In addition, those who wish to start a business in the industry are left with the difficult or impossible task of securing a small business loan via traditional lending sources.

In an effort to find a solution to the problem, a credit union was created in Colorado just for the marijuana industry. However, the only way this credit union can officially open its doors is through the approval of the nation’s top financial policymakers.

U.S. Rep. Scott Tipton recently stated in an interview that it is unlikely that the Federal Reserve will act anytime soon concerning this request by the marijuana-only Fourth Corner Credit Union for the direct access of the nation’s banking system. He did acknowledge the fact that he has been told privately by several bankers that they would like to be able to work with businesses that are legally growing and selling marijuana in Colorado; however, they fear being accused of money laundering in the eyes of federal law.

While Congress recognizes the need to bridge this gap that lies between state and federal law, no solution is expected anytime soon. In the meantime, Sens. Kirsten Gillibrand, D-N.Y., Cory Booker, D-N.Y. and Rand Paul, R-Ky., have introduced a bill that would ultimately end the federal prohibition of medical marijuana; thus, making it must easier for banks to work with medical marijuana businesses.

While things are still sorting themselves out, the marijuana industry has found other solutions to their funding and payment processing needs. Alternative lending providers that specialize in working with businesses considered “high risk” by traditional lenders have stepped up to the plate. They not only offer merchant cash advances that are better suited to the industry’s funding needs (in addition to being faster and more hassle-free), but they also offer safe and efficient payment processing solutions. Many marijuana businesses are finding their needs met by marijuana payment processing.

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Recreational Marijuana Has Taken Over Medical in Colorado

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The marijuana state, Colorado stampWhile many states are just now hopping on the medical marijuana wagon, the sales in Colorado are beginning to increase for recreational marijuana. Medical marijuana sales in Colorado actually fell during 2014. The number of medical cardholders also fell; these medical users have begun to purchase through recreational instead.

According to an article by Susan Scutti of Medical Daily, “Looking at the current trend line, the research and advisory firm predicts the average patient count will continue to decline – from approximately 114,000 in 2014 to 99,000 by 2020 – while the number of recreational users grows”.

Despite the legalization of marijuana in the state of Colorado, many remain hesitant and reluctant due to the substance still being illegal on the federal level. Colorado has not full embraced the legalized drug, medically or recreationally. Even though the tax revenues are tempting, most jurisdictions in the state will not allow marijuana sales – of any kind.

In addition, people are avoiding registering for a pot card. The illegal status of marijuana on the federal level is keeping people afraid that doing so will lead to feds busting down their doors. As a result of this fear, people have become willing to pay extra to be invisible.

Business continues to be difficult for those in this industry for the same reason that it is hard for its customers – the illegal status on the federal level. Marijuana has been and continues to be classified as a Schedule I drug; this means, according to federal law, marijuana has “no accepted medical use”.

Because of this, banks remain unwilling to allow dispensaries to deposit their profits with them. Acquiring business funding is also difficult, if not impossible. While legalization in the state of Colorado may be established, the reality and practice of it is a completely different story.

Many marijuana businesses have turned to medical marijuana payment processing. As states continue to legalize medical and recreational marijuana, providers that offer these specialized services are working to fill the gap that businesses need as the states continue to work through the process of acceptance that follows legalization.

For Marijuana payment processing solutions contact us today!

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The U.S. Legalization of Marijuana Proves to be Affecting Mexican Cartel

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??????????????????????????????????????????????????????????????????????????Much has been said about the battle for legalization of marijuana in the states, but how is this legalization process affecting the illegal scene? According to recent reports, the U.S. legalization of marijuana has really begun to cut into the Mexican Cartels’ smuggling of the substance. U.S. Border Patrol Agents stationed along the 2,000 mile-U.S. border have not seen nearly the amount of marijuana that has been confiscated in previous years, though the smuggling of other kinds of drugs is increasing.

The quantities of marijuana confiscated by the U.S. Border Patrol continues to steadily fall. In 2011, 2.5 million pounds of the drug were seized. In 2014, this amount decreased to 1.9 million. While agents are working hard to keep the border safe, the drop in seizures seems to be from more than just law enforcements’ efforts.

The wave of U.S. marijuana legalization seems to be the big reason for the hit to the Mexican Cartels’ trade. In 2012, both Colorado and Washington State legalized marijuana. Alaska, Oregon and D.C. followed shortly. The U.S. growers have begun to build a budding industry. These gourmet products have even been given exotic names; such as, White Widow, Oaktown Crippler and Golden Goat.

Drug policy reformers have used this as support, saying that the care taken by American dispensaries in labeling their drugs based on how strong they are plus the market shift away from Mexican gangsters demonstrates that people are willing to buy the product from a legal tax-paying business.

As the marijuana industry continues to grow at a pace that has made it the fastest growing sector of the U.S. economy, analysts are trying to determine what the long-term effect on the Mexican cartel finances and violence will be. It will hopefully mean less cash for the cartel to buy weapons and bribe police. In addition, there will hopefully be a continued decline in murders in Mexico.

Even with the industry booming in the U.S. where it has been legalized, the fact that marijuana is still illegal on the federal level means securing business funding from traditional lending sources will continue to be difficult, if not impossible. When some marijuana businesses have encountered this issue, they have turned to alternative funding. Marijuana payment processing has become a great option for business that need a provider willing to work with their “high risk” categorization while also providing them with a fast, simple and hassle-free experience.

For Marijuana Payment Processing, apply today!

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How the CARERS Act can Protect the Needs of Medical Marijuana Patients

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imagesDespite the continued legalization of medical marijuana on the state level, the substance is still very much illegal on the federal level. This is not only making it difficult for entrepreneurs who wish to open dispensaries, but it also makes it difficult if not impossible for those who need it for a medical condition(s). Many with medical needs are left with two choices: move to another state where medical marijuana is legal or obtain the substance illegally and face being arrested.

On the federal level, marijuana is classified as a Schedule I substance. According to the DEA, there are five distinct categories or schedules used to classify a drug, substance and certain chemicals depending on its acceptability for medical use and its potential for abuse and dependency. Schedule I drugs are considered to be the most dangerous, with a high potential for abuse and severe psychological and/or abuse potential.

Marijuana has been listed as a Schedule I drug along with heroin, LSD and ecstasy, to name a few; thus, it has been listed as a drug with the highest potential for abuse and no acceptable medical use. For many people with medical conditions, this is a big disappointment and a daily struggle.

Kate Hintz, a writer for change.org, recently shared the story of four-year-old Morgan. Morgan suffers from Dravet Syndrome, a rare form of epilepsy that causes her to have dangerous seizures. The longest she has gone without suffering from one of these seizures is four weeks. The long list of medications she takes have given her kidney stones, ulcerative colitis and compromised her respiratory system.

Research and advice from doctors has persuaded Morgan’s family that cannabidiol oil – a form of medical marijuana – might be her best option. And it would mean fewer side effects for the little girl. It would not make her “high”, and she would not have to smoke it. However, the family cannot legally obtain medical marijuana at this time because of where they live and because the substance is still illegal on the federal level.

For now, the family is supporting the Compassionate Access, Research Expansion and Respect States (CARERS) Act. This bipartisan bill would allow states to legalize medical marijuana without federal interference. In addition, it would reclassify marijuana as a Schedule II drug; thus, affirming that marijuana does indeed have medical benefits.

For those involved in medical marijuana from a business standpoint, the federal classification of the drug means that finding funding is difficult if not impossible. Fortunately, there are alternative funding options out there that specialize in offering services to this industry. Marijuana payment processing, for example, may be the safe and efficient option your business has been looking for.

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Legalized Marijuana Businesses Pull in Millions in Cash

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Gold_MarijuanaIn our past history people in general had a distrust in banks. They didn’t want other people knowing their business. So they hid cash in their mattresses, buried it in coffee cans and found cubby holes in the attic to save for a rainy day. If you are in marijuana sales and real in hundreds of thousands of dollars in a day or week, where can you stash your cash?

It goes without saying that marijuana merchants run a business that is ripe for robbery. It is flat-out dangerous. Not only do you have criminals chomping at the bits to rob the store, all employees are placed in a high risk area. Illegal drug users have found a money tree they can shake to score their next fix.

Some store owners have become more in turn with their environments. They hire specially trained armored cars and agents to pick up bag after bag of smaller bills. At this time the national armored chains won’t touch the assignment. Some owners hire people to take small amounts hour after hour and deposit it at ATM’s.

From the state’s view, these cash-only businesses are a conundrum. They generate millions of dollars in sales, but the sales are not transparent. Is there anyone skimming from the top? Is the state receiving all the tax money it deserves? At the Federal level there is a chance of money laundering, so the business is constantly being watched.

A business selling marijuana could avoid the danger of being on an all-cash basis with a marijuana merchant account. Finding a card processor that would open an account can be a daunting challenge. But not if your do business with MMA. They have been helping medical marijuana dispensaries with payment processing for almost 10 years. They are seasoned and know all the rule, requirements and ways to make your business thrive legally.

A marijuana-merchant-account.com customer has chosen MMA because there are no processing fees, discount rates, or Interchange fees. There is a low – if no – risk for the merchant. There are no chargebacks or chargeback fees. The merchant operates legally and within Visa, MasterCard and the association guidelines.

If you are a licensed marijuana business and you have run out of places to stash your cash, call the Marijuana Merchant Account for a marijuana merchant account today. Your business can only grow from here.

Contact us today.

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With Great Cash Comes Greater Struggle

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marijuana-money-profits-earnings-medical-marijuana-projectWhen you legalize an industry that has been illegal for too long, the changes to the business landscape of such a change are plenty. This is the case with the marijuana industry, whereby an increasing number of business opportunities are emerging, with people using their imagination to come up with new ways to capitalize on this opportunity.

As per the 2010 Cato Institute paper The Budgetary Implications of Drug Prohibition, the potential size of this industry is in the region of $14 billion – a staggering number for an industry that is expected to grow further and become even more colossal.

As you can see, the prospects of marijuana businesses are certainly on the high. The competition is relatively low, and there are still unexplored areas that creative businesspeople can make the most of. So if you are one of many people who are unable to resist the lucrative charm of this newly legalized industry, there is little reason for you not to go for it. The cash is good, and the there is no lack of ways that this cash can be made.

However, and this is a major however, banking services and other financial institutions haven’t quite embraced this industry as yet. Despite its legalization in several states, the federal government still considers marijuana as an illegal narcotic. The result? Your business is considered high risk, and most financial institutions steer clear of any opportunity to allow you loans or do business with you of any sort.

But, this isn’t your biggest challenge. Your biggest challenge, instead, is getting access to a merchant processing account, without which you are unable to accept credit card payments. It’s almost like a treasure chest right in front of you that you can’t touch. So much cash, and at the same time, so much struggle too. Every business needs a merchant account, but what you also need here is a provider who actually understands you, your business, and its needs. This is what we, at marijuana-merchant-account.com, do best.

At marijuana-merchant-account.com, we are dedicated to getting you the best marijuana payment processing services around, allowing you to immediately start accepting credit cards and making the most of this opportunity. We know the story behind this apparently controversial business of yours and therefore, address all the issues and provide you with just the merchant processing services you are looking for.

All you have to do is reach out to us, and you will be reaping benefits of this emerging and extremely lucrative marijuana industry in no time. At the end of the day, you retain the cash part, while we deal with the struggle. Win-win.

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